Prime Minister Andy Burnham announced that decisions on the controversial Rosebank oil field and Jackdaw gas field are coming shortly. The UK government faces pressure from energy companies and opposition leaders over North Sea development following legal challenges and a recent parliamentary by-election.
Prime Minister Andy Burnham stated that the UK government will make a decision shortly regarding the development of two major North Sea projects. A decision regarding the Rosebank oil field off the Shetland Islands will take slightly longer to finalize, according to government officials. Speaking on The Rest Is Politics: Leading with Alastair Campbell and Rory Stewart, the Prime Minister noted that the country will need to rely on oil and gas for some time, stating that it must pay for or provide a bridge to a clean energy future.
Burnham Faces Commons Questions On Drilling
During Prime Minister’s Questions, Conservative leader Kemi Badenoch pressed the administration to stop delaying North Sea drilling. She argued that approving the sites earlier would have supplied domestic gas for the winter season.
“In July, he said he would approve the Rosebank and Jackdaw oil and gas fields in the North Sea. What’s he waiting for? If he’d approved them back then, we would have British gas warming British homes this winter.”
Kemi Badenoch, Conservative leader
In response, Burnham pointed out that his administration inherited a regulatory framework that had been struck down by the courts under the previous Conservative government.
Courts Blocked Previous Approvals
Both Jackdaw and Rosebank originally secured licenses from the Conservative government in 2022 and 2023. Environmental groups subsequently challenged the approvals in court. Under the Starmer Labour government, the Department for Energy Security and Net Zero prohibited issuing fresh exploration licences while managing existing fields for their entire lifespan. Burnham has maintained that his government will adhere to that policy while taking a pragmatic approach to previously licensed projects.
UK ENERGY SHOWDOWNKemi Badenoch presses PM Andy Burnham to stop faffing about and approve the Rosebank and Jackdaw oil fields as Burnham says the government will reveal its plans shortly.#NYI pic.twitter.com/YTS1MJaBu0
Energy Bills Face January Surge
The debate over North Sea production unfolds against a backdrop of rising consumer costs. In January, UK household energy bills are projected to climb by 16 per cent, reaching an annual total of £1,999 and establishing the peak cap level seen in four years. Wholesale costs have climbed following disruptions associated with the war on Iran.
An Oxford Smith School analysis published in March concluded that maximising oil and gas extraction from the North Sea would only save households a modest £16 to £82 per year, based on the caveat that collected tax revenues were distributed to households to offset energy bills.
“The idea that draining the North Sea would make the UK more energy secure or significantly save on household bills is sheer fantasy.”
Dr Anupama Sen, Head of Policy Engagement at the Smith School of Enterprise and the Environment
At the same time, the Equinor and Shell partnership behind Jackdaw warned that any failure to greenlight either Jackdaw or Rosebank would deal a blow to future investments across the British waters of the North Sea.